Hedge Funds’ Assets Increase 17% to Record $2.63 Trillion

January 22, 2014 Leave a comment

Hedge Funds’ Assets Increase 17% to Record $2.63 Trillion

Hedge-fund assets increased by 17 percent last year, reaching a record $2.63 trillion, according to Hedge Fund Research Inc.

Global assets rose by $376 billion, including $63.7 billion in net inflows from investors and $312 billion in investment gains, the Chicago-based data provider said in a report today. The fourth quarter was the sixth in a row that the industry saw a growth in assets, it said.Investors poured $29.6 billion into event-driven strategies, which include activist-oriented hedge funds such as Daniel Loeb’s Third Point LLC and Bill Ackman’s Pershing Square Capital Management LP.

Event-driven funds had an average return of 12 percent in 2013 compared with a 9.2 percent gain for all hedge funds, HFR said. The category is “likely to continue to see strong flows” through at least the first half of 2014, HFR President Ken Heinz said at a press briefing in London today.

Long-short equity managers, who take bets on both rising and falling stocks, and global macro managers should see more favorable conditions this year, Heinz said. Macro strategies invest in stocks, bonds, currencies and other instruments based on expected trends in global markets, and many were hampered in recent years by central banks’ debt repurchases, known as quantitative easing.

“I think we’re coming out of a very abnormal period in the financial markets,” Heinz said.

To contact the reporter on this story: Chris Larson in London at clarson22@bloomberg.net

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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